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2/19/2013 4:00PM

Einhorn Makes His Case Against Apple

A preview of the hearing on David Einhorn's motion for an injunction against Apple, Lance Armstrong hired Lobbyist to sway criminal probe, and a GOP aide talks about the possibility of a deal before spending cuts kick in. (Photo: Getty Images)

This transcript has been automatically generated and may not be 100% accurate.

... the ... Michelle David Einhorn makes his case to a judge will have back and mall right here right now on the New Saab good afternoon and welcome I'm Simon Constable ... the story about David Einhorn is battle against ... Apple ... Wall Street Journal Jessica Lessin joins us now from sentences go ... there she is accepting adjusted up ... the seventy ... so tells about the online on what was somewhat isn't asking the judge to do and why ... six am right now we have this hearing going on in your art out of reach David Einhorn lawsuit against Apple ... and he's trying to sue to block a vote on a shareholder proposal that Apple's but for it ... and a shareholder proposal passed to do with whether the company can issue preferred stock ... without getting shareholders approve of ... I'm and David Einhorn wants it to be a will to do that so he wants to block this proposal which would require Apple to get shareholder approval to issue preferred stock ... and in this matter is this cuz in Wales found decided they investor unease about Apple's cash and palate using its cash ... so I was going in within a targeted attack to try to compel Apple to do something with its uh hundred and thirty seven billion ... yen US or paid topic has an enormous amount of money hundred and thirty seven billion dollars this is not the government with or in this is a ... big company and Dom you know I know I know from Wall Street them a lot of people say well that that isn't doleful lot of cash but he still very technical with this estimate going into some of ... the logistics of proxy votes ... I and and I was calm Florida and he's been lobbying Apple to issue this type of preferred stock which can be ... a preferential preferred it would have a separate I'm ... certain dividend schedule and when he argues be a great use for its cash that still gives the company a lot of flexibility ... I he's the money meant for months on this Apple says is considering a proposal Apple's trying to separate the proposal from the shareholder provision which it said would be good for shareholders if adopt it ... aam but I knew instead waiting until he sees it as one Africa and Dom ... Keane is really pushing the company to do something very specific ... on terror what shareholders and said he's not getting is way and so he's finding issue with ... on this one thing in their proxy which ... is scheduled to come to a vote on a weaker into my hands and knees making this case to a judge do we have any idea what the outcome is likely to pay or is it isn't too difficult this time ... right now we're in the mix of arguments not in any art District Court said tied to say ... I we did that to you on a proxy for shareholder advisory firms ... and Glass Lewis and ISF ... have come out in favor of Apple on this proposal they're seeing on ... you know people to adopt day ... on how prayer is is also sort of urging the same said there seems to be a lot of extra away says you are ... agreeing with Apple on this but there's also a lot of investor unease about Apple and ... and what it's doing with its cash so you've got a lot of people who are disgruntled ... we showed we surely do with that is not the case of the human rights thank you very much Wall Street Journal study lesson and joining us now from what some from from San Francisco ... will just to mention the countless with a scalpel what what does a big institutional investor one Apple to do what we go when we got some madly head of global proxy voting at Calpers e joins us ... from Sacramento thanks for joining us up ... I appreciate it ... so ... that the big question here is ... his Apple doing the right stuff waved its cash that they shed more the cash within Vestas what a scalp was mine ... I would argue ... the Greenlight Capital call ... aam but we have been reading our vote on ... it being shared around the entries but approval the proposal ... to be with the majority voting in director elections ... an elimination of blank check preferred stock ... I'm going into ... the cash ... she learned that Peter Atlanta probably have ... and I have to propose approved an ... enemy that ... would have to ... share her again yesterday per share ... in the Senate ... so you you think maybe you should uphold stock could be a benefit to shareholders but you still wants me the process to be gone through a voting is that that's correct right ... I have to share I and and they haven't ... been reading the key ... so what what it's I just wanna throw that was ninety one has to show all this ... vote ... against this until you're one is Shell's what overall the shareholders' vote vote vote against this handbag is that for this talk he still supported ... although ... I may have been fortunate ... I think that ... this proposal member to have it and I'm ... going to rush in and what about the trend ... I'm ... and ... I don't know ... it grew bored with their identity Shara and in that perspective you can take ... okay so it has been shoveled the riots that you more interested in ... and out of the cash I mean one of the things that sound a lot of people at teaching business goes that if he wanted to have a lot to cash in your investment you would get a money market funds ... you wouldn't buy stop by buying stock you want something to be done with the cash isn't that a reasonable expectation ... I want to argue that again I think that that ... you know we ... had a share and happily hold them for demand and accountable for any ... all to do with it ... I know how and when that team ... so um well we we will leave it that is anything I mean you mentioned in the pen to write this I'm very quickly ... aam you want to vote saying on direct is not just appointment by the apple as CEO ... your friend ... yes ... very strong and getting shoppers had to share a ride and majority voting ... rights and fundamental ... to ... write stuff thank you Brian much so efficient SaaS told Manly head of global proxy voting and helpless to have an enormous amount of money to invest ... well what happens in Washington to every time the sequester will Talia in thirty seconds ... from ... these cuts are ... smart they are not fair that will hurt our economy ... that will add ... hundreds of thousands of Americans to the unemployment rates this is not an abstraction ... people will lose their jobs ... B ... I was present Obama with a bang having a deal to be done to avert the sequester the massive ... spending cuts discuss this moment all Washington had a thought ... for parents wanting from the sentence came at ten ... am the sun normally Washington that if I can rmb to bring in all it's my pleasure to be open ... to you watch this bottle but everyday I see you living there sometimes data we didn't go over the edge when you use the site ... we are definitely going to have sequester on March first ... there's no doubt about it I hear it from ... the leadership offices of the Republicans ... and Democrats antenna how and how of expressing maps ... well one of the ... top aides to two non danger Apollo and told me we are ready to shoot a hostage ... and I'm one of its other and it's it's time for medical was that mean I mean when when I meet them willing to own sacrifice ... yet when we've had these ongoing debates now ... cents before the election ... on how best to put our financial our fiscal house in order ... the Republicans are not happy with the results are ready to shoot a hostage ... to tell the president to show and ... they're dead serious ... you know if he ... should ... what what ... how will play with the general public by offering what one other things we've seen is that ... aam but sometimes a unit of doing what ... they did ... it fits with what ... Republicans want has flown back home and in a way that really reflects badly on them with the public will not ... keeping novel close eye on them when ... I know I think outside the Beltway for not paying close ... attention to this number one number two the effect on the economy will be so slight that most people don't realize that sequester happen ... meanwhile if they get ... it all right if that one of those double what the affair ... for the third bureaucrat ... they will ... mean for the public at large it's an honor and we're going to lose maybe half a percentage ... of GDP growth issue as a result of the sequester ... but in the long run it's good for the economy GDP growth should pick up ... according to CBO to three point five the national budget office ... are ... you listening to present Obama speech this morning was this beach not really up for the press conference ... on the side of the things that I'm ... becoming irritated get let's be honest and I went in one of those now let's listen to but ... I'm willing to cut more spending that we'd all be ... to write programs that are working ... so I was present Obama on its back on my mother's camera to programs are not looking shouldn't backed the children of already ... I thought that he was trying to get the attention of Comedy Central by saying something so ... ridiculous on its face like ... I am willing to cut spending that we don't need ... what a courageous stands for politicians to ... stop so you Yumi you think he's Dunigan ridicule from Apple will not be ... so the nominal top of the places we can be a ... critical one Russian and all but ... I don't think Jon Stewart ... and Stephen Colbert or will ridicule and because ... they love them and Selina morning said something ... ridiculous told police can use his top form performed comedy Central was not up on track with dear ... like Russia joining us tonight sent the ball past a Washington had an egg wheat that Jemma every week and a Barron's what I am in the market this week will Talia Cytec both running in thirty seconds ... for ... welcome new sub at the Mr. live I'm Simon Constable well as a pitcher of the down to bank in the green old a top ... fifty points the tech heavy Nasdaq up ... aam uptown ... to present the sun and the SB phone and pick stocks index about because of the sun that tells all about it Chris Dieterich told The Wall Street John joins us um thanks Ming s of course I'm ... I'm very very good so ... when a whole ... lot of things going on so that when things going on where we ended up as as you pointed out the Dow up about four points now it's it's really in striking distance of an all-time high last ten percent when five hundred and thirty points ... sorts going on aam Khan a healthy mix of deals and some economic data ... in the sky with economic factors in a while of economic data ... from beef thinly federally home builder confidence ... index ... that has been some only strong what happen to get it so that's been a drumbeat hired to date it in February public confidence fell asleep the first time in ten months but still hovering in a very high level ... um but that that sort of right at ten o'clock when the data hit home builder stocks which were firmly positive start the day ... kind of felt pretty sharply as I was KB Home and poultry in the southern desert Pulte when our is well and those those look Pulte for instance is more than doubled in the year so absolutely red hot sector but but ended about percent lower ... it's not really that was really one of the long now ... common a few spots another was the survey out of Europe the CW subway what what is that why does it matter what the decline in answer that's what economic expectations in Germany Germany's biggest growth engine in Europe's Audi's the closely watched economy is not my problem is that ... the area of ... Brighton saw it on a mixed economic data that with GDP recently so this one on the highest in several years actually thousands to the meantime assurances to the intense though so we have is the German DAX stock index shooting up about one percent a year when it bit higher ... so comics that out of Europe recently but the injury and for an economy ... today's data really moves the needle in that seem to carry over early and the U S market while attending the summit deal announced OfficeMax and Office Depot ... Tesla and Time and ... SunTrust lets a first name right so with the deal mean you continue to lead the league OfficeMax Office Depot drink that I am what what investors seem to be responding to was the potential for ... some cost cutting the Senate to help the bottom lines as sales of both are struggling so ... Office Depot sells a wall muscle wreck up the money ... that's right ... they wouldn't speak and you can always look to the Bakken finals office chairs the end of the youngest Staples trying aam but was just a ... place in a different symbols of American fitness a more severe in Iraq in the biggest gainer on the SNP five hundred that what analysts are saying today is that um they stand to benefit from this merger of their rivals and as you know it may be some store closings they have a benefit to ... they can grab market share their ... top ten great stuff was bright sunny thank the much for sentiment ... ALM mall man on the vs day don't come ... Shane cyclist Lance Armstrong hired a Washington lobbyist in twenty ten in an attempt to help clear his mind was the gals we Albergotti joins us now ... to explain the D tells curious I'm curious ... it isn't just the kids got the story keeps on giving a stick to what they get that that that that ... analysis and ... hide why not run the other stuff I mean is that ... they will do this also uses the stories basically it interesting on back in two thousand and seven Lance Armstrong was being investigated by criminal federal authorities ... he quietly hired through his attorney ... in lobbying firm and Barnes group ... to get to lead gains in its use the term on the onthe lobbying disclosure documents with ... government officials about their interests and ... athletes professional athletes use of performance in anti drugs ... so you read between lines in Enid it's basically ... this was part of their efforts to ... unify its criminal investigation I'm almost mystic apples and so the pasta milk on seventh on the roster some in court ... they really was a lobbying effort to quiet muted but still the core Democrats time is right mind ... what is already on would try to interfere with a criminal investigation ... operates this saying look there's nothing improper going on here and of course you know hiring lobbyists is is completely legal it happens every day ... on Capitol Hill ... and Dom you know he he's right of course we don't know exactly what meetings took place meaning of them are some meetings in Europe within that with what was said ... how was received so ... we have to go up is is the lobbying firm itself saying you know that there really wasn't much to ask ... interesting so ... I mean is this yet more of an example of ... the plums from for with the toasted digging in on ... I never did this kind of it that this and then it all comes out of a debt that's why think it's an example of ... just how ... being and topped his legal team was over the past few years means dealing with these issues ... and lots of high powered lawyers ... and really they polled of us not to think that this this really shows why it is interesting to discuss logistics um don't know what else is gonna come out when you know we have the whistleblower lawsuit filed by his former teammate ... in Washington where ... he's he's accusing and defrauding the U S government the U S postal service was Armstrong sponsor ... and in the contracts ... in Emerson and they don't think was ... so ... you that's an interesting one if others awesome the insurance company that he'd ... Armstrong's bonuses for his true France wins they want their money back ... and and a few others and of course the of the American Taxpayer puzzle some says that we have this week as ... well as the money that they need the money and that we need us that money back under the radar was on it ... all the Wall Street tunnel wall mount the vs